Spending on distribution is easy to get wrong. These questions help you compare options before you pay.
1. Where will it actually appear?
Ask for a sample report from a past release. Look for real placements, not only a list of sites that republish everything.
2. What is included in the price?
Ask what changes the price, such as word count, images, video, regions, and tags for investors. Get the total in writing.
3. Does it meet exchange and regulatory needs?
Companies listed in the US or Canada may have disclosure rules for material news. Ask your counsel or exchange contact which services satisfy them.
4. What will I see after it goes out?
Good reports show views, clicks and pickups. Be careful with promises about stock price or guaranteed coverage.
5. Who writes and checks the release?
The company is responsible for what it says. Have someone who knows securities rules review it.
When you are ready to tell investors your story, read our guide on how press release distribution works or see For Companies.
A worked example
Say a company has a contract worth $2 million and wants to announce it. Before paying for distribution, ask what reach it buys. A basic package may send the release to media and websites, while a larger one adds more regions and industry lists. Compare the cost with the audience you need.
Red flags
Guaranteed pickup by major outlets, promises about stock price, unclear pricing and pressure to buy extra services. A good seller explains what you get and what you do not.
Do your own homework
Search for past releases from the service and see where they appeared. Ask for references from companies of your size. And check rules for disclosure in your market.
Read our overview of how distribution works. If you want your news told as a story, see For Companies.
Keep learning about before pay
Reading is a start, practice makes it stick. Run the numbers in our investor tools, test yourself in Stock Jeopardy, or follow the start here guides to see what to read next after before pay.
Further reading: Investor.gov from the U.S. SEC and the Canadian Securities Administrators investor education site offer free, independent guides for new investors.
A worked example of comparing two quotes
Say a small company gets two quotes for the same announcement. Service A charges $400 and Service B charges $950. The cheaper one looks like the obvious pick. Then you ask for the details in writing.
Service A covers 400 words, one image, and posting to its own site and a few feeds. Extra words cost $1 each, and a second region costs $150. Service B includes 800 words, an image, video, two regions, and a placement report with views and clicks. Your release is 650 words and goes to two regions. Service A now costs $400 plus $250 for extra words plus $150 for the second region, which is $800. The gap shrinks from $550 to $150, and Service B gives you a report you can actually read. The sticker price was not the real price.
What a good placement report looks like
Ask the vendor for a sample report from a past release, with the name of the company removed if needed. A useful report shows where the release appeared, how many people opened it, and how many clicked a link. It should list real pages, not just the name of a network. Many services push a release to hundreds of sites that copy each other. Those copies rarely reach a real reader.
Look at the dates too. A release that shows up the same day on a handful of known news pages tells you something. A long list of obscure pages that appear weeks later tells you much less.
Mistakes small companies often make
- Paying for a release when there is no real news in it.
- Skipping the legal review because the release feels routine.
- Buying add-on packages under time pressure.
- Judging success by the stock price the next day instead of by readers reached.
The last one matters most. A price can move for many reasons, and a press release is only one of them. No honest vendor can promise a price move. If you hear that promise, treat it as a reason to walk away.
Why investors should care too
If you read stock news, this also helps you. Many press releases are paid ads written by the company itself. They are not reports by independent journalists. A headline that says a company is “transforming” its industry is often just the company talking. Look for numbers, dates, and named partners. Check the claims against the company’s filings on sec.gov. Our market news page tries to keep that line clear, and the glossary explains terms you may see in a release, such as “letter of intent” or “definitive agreement.” A letter of intent is not a signed deal.
What to do next
Write your five questions on one page. Send them to two or three vendors and compare the written answers side by side. Put the total price, the regions, the report details, and the review process in a simple table. Then pick the vendor whose answers are clear and specific, not the one with the loudest promises. Keep the page. Next year, you will have a starting point.
Questions people ask about press release services
What does a press release service actually do?
It sends your release to a distribution network, and some also post it on their own sites. That is different from earning coverage from a journalist. Distribution places the text in front of outlets and feeds, but it does not guarantee that anyone writes about it.
Why does the price vary so much between providers?
Costs often depend on word count, images or video, regions and investor tags. Some providers add extras at checkout. Ask for the total price in writing before you pay, and ask which items are included so there are no surprises.
Do I still need someone to review the release?
Yes. The company is responsible for what the release says, especially if it is publicly listed. A person familiar with securities rules should review it. Counsel or the exchange can also confirm whether a particular service meets disclosure requirements before you rely on it.
Quick recap
Before paying for a press release, ask for real examples of past placements, clear total pricing and reporting on views and clicks. Be careful with promises of guaranteed coverage or stock price effects. The company stays responsible for the content, so a careful review is part of the process.
Positive Stocks is not affiliated with, paid by or endorsed by any service named here. Education only, not investment advice.
